Time to make steel fossil-free

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Time to make steel fossil-free 1

Transcript of Time to make steel fossil-free

Page 1: Time to make steel fossil-free

Time to make steel fossil-free

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The world changes – and it requires steel

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► Climate change, The Paris agreement and UN’s global sustainability goals.

► Growing population from 7 billion today to 9 billion in 2050. ► Steel is necessary for building societies, infrastructure and well-being of

people.

► Steel can be recycled over and over again.

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Mining, steel and electric power industry today

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► SSAB’s current steel production system is one of the most carbon-efficient in

the world. Still, the steel industry is one of the highest carbon dioxide emitting industries, accounting for 7% of global CO2 emissions. SSAB alone stands for 10% of Sweden’s and 7% of Finland’s CO2 emissions.

► Sweden has unique conditions for initiatives like HYBRIT with good access to fossil free electricity, Europe’s highest quality iron ore and a specialized and innovative steel industry.

► Before a solution for fossil-free steel is in place, SSAB will reduce their direct carbon dioxide emissions in Sweden by 25% about 2025, mainly due to process conversions.

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Need for steel increases

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400Mton av skrot 1 400 Mton

av skrot

1 400 Mton av järnmalm

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HYBRIT – a groundbreaking effort ► Joint venture between LKAB, SSAB and Vattenfall established in 2016.

► Aiming to replace coking coal, traditionally needed for ore-based steel

making, with hydrogen.

► The world’s first fossil-free steel-making technology with virtually no carbon footprint. Emissions will become water.

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Customers benefit from HYBRIT

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► Helping customers create a strong environmental profile.

► Fossil-free steel as marketing tool. ► Competitive advantage for the entire value chain.

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Taking the green route

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Main findings in pre-feasibility study ► A pre-feasibility study was conducted during 2016-2017. The study has strengthened our belief

in HYBRIT. The study gives the green light to proceed to next phase.

► During the spring we will start to plan and design a world-unique pilot plant for fossil-free ore-based steel production in Luleå and Malmfälten.

► At the same time we will also investigate the possibility to broaden the initiative to Finland.

► Factors like the price of electricity, coking coal and carbon dioxide emissions will be crucial. However our assessment is that fossil-free steel will be able to compete with traditional steel in the future.

► Significant national efforts from the government and research institutes are still required.

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Pilot plant in Luleå and Norrbotten iron ore fields

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► Planning and designing the construction of a globally-unique pilot plant for fossil-free steel production in Luleå and Norrbotten iron ore fields, 250 km north west of Luleå, starts in spring 2018.

► The ground will first be broken before summer 2018. ► The initial work is estimated to cost SEK 20 million, half of which will be

funded by the Swedish Energy Agency. SSAB, LKAB and Vattenfall will contribute the remaining SEK 10 million.

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Progressing to the next phase

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Stepwise CO2 reduction

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► SSAB's will reduce its CO2 emissions by converting their blast furnaces to electric arc

furnaces, starting 2025. ► LKAB will increase the energy efficiency, reduce the CO2 emissions and change their

process technology to reach a positive CO2 balance by 2045. ► Vattenfall's goal is that both the company and its customers will be completely fossil-

free within one generation.

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Main challenges

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To develop an efficient process

to use 100% hydrogen on an

industrial scale, which has

never been done before.

To produce hydrogen in an

energy-efficient way so that

it is economically justifiable.

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What do others do?

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Several projects within the European steel industry are trying to reduce CO2 emissions: • CCS (Carbon Capture Storage) • CCU (Carbon capture and utilization)

There are also projects aiming at replacing CO2 : • CDA (Carbon Direct Avoidance)

HYBRIT stands out because it has the most aggressive timeline to address the root cause of the CO2 emissions.

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Longterm support from society needed

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Most urgent is: ► Continued good access to fossil free electricity, improved infrastructure

and rapid expansion of high voltage nets for electrification of the mining and steel industry, eg a 400 kV power line is a prerequisite for a conversion of the blast furnace in Oxelösund in 2025

► Competence development and funding for research in the relevant areas of knowledge

► Faster processes for permission to build pilot and demonstration plants and to reach climate targets

► The government's active support for pilot and demonstration plants, as well as support for creating long-term conditions for the initiative at EU level.

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When is HYBRIT ready?

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